Nanjing Securities: LED light source revolution is coming, industry blowout is just around the corner

The market synergy has taken shape and the LED market has entered a stage of rapid development. The government sees energy conservation, manufacturers look at profits, the market sees costs, technology drives the development of the LED market, and LCD TVs and lighting illuminate LEDs with broad prospects. The LED market is expected to reach US$ 9.27 billion in 2010 and a compound growth rate of 54% in the next three years. Among them, the market size of HB LED can reach 8 billion US dollars, and the compound annual growth rate will be 31% in the next 3-4 years.

According to topological research, global LED demand in 2010 and 2011 was 111.6 billion and 170.2 billion. The demand dynamics are mainly from the LCT TV and lighting markets, and the demand for the two sectors is expected to be 32.88 billion this year. At the same time, we judge that as LED stakeholders have reached market consensus and supply (technology) creates demand, the market process will accelerate. Global LED capital expenditures have increased significantly and MOCVD demand is strong.

The historical experience of technological innovation proves that large-scale capital expenditure will accelerate the process of commercialization of technology: 2010-2012 will become the climax of the LED market.